Facts of the Case

The petitioner, M/s The Budhewal Cooperative Sugar Mills Limited, Ludhiana, filed a writ petition before the Punjab & Haryana High Court seeking relief concerning the filing of TRAN-1/TRAN-2 forms for claiming transitional Input Tax Credit (ITC) under the GST regime. During the pendency of the matter, the respondents brought to the Court's notice the directions issued by the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, which provided a comprehensive mechanism for reopening the GST portal for filing or revising TRAN-1 and TRAN-2 forms.

Issues Involved

  1. Whether the petitioner was entitled to relief for filing or revising TRAN-1/TRAN-2 forms to claim transitional ITC.
  2. Whether the Supreme Court's directions in Filco Trade Centre Pvt. Ltd. adequately resolved the grievance raised in the writ petition.
  3. Whether any further adjudication by the High Court was required after the Supreme Court's nationwide directions.

Petitioner's Arguments

  • The petitioner sought appropriate relief to enable the filing/revision of TRAN-1/TRAN-2 forms for claiming transitional credit under the GST laws.
  • After being informed about the Supreme Court's decision reopening the GST portal, the petitioner submitted that the grievance stood substantially addressed.
  • Consequently, the petitioner chose not to press the writ petition further.

Respondent's Arguments

  • The respondents relied upon the judgment of the Hon'ble Supreme Court in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another dated 22.07.2022.
  • It was submitted that the Supreme Court had already directed GSTN to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms.
  • The respondents further assured the Court that the Supreme Court's directions would be complied with meticulously.

Court Order / Findings

The Punjab & Haryana High Court observed that the issue raised in the writ petition had already been addressed by the Hon'ble Supreme Court through its authoritative directions in Filco Trade Centre Pvt. Ltd. Since the respondents undertook to comply with those directions and the petitioner did not wish to pursue the matter further, the Court disposed of the writ petition without examining the merits. Pending applications were also disposed of accordingly.

Important Clarification

The judgment reiterates the practical implementation of the Supreme Court's directions in Union of India & Another vs Filco Trade Centre Pvt. Ltd. & Another, including:

  • GSTN was directed to reopen the common portal for filing or revising TRAN-1 and TRAN-2 forms.
  • The benefit was extended to all aggrieved registered taxpayers, irrespective of whether they had filed writ petitions or approached the IT Grievance Redressal Committee.
  • GSTN was directed to ensure that no technical glitches occurred during the reopening period.
  • Tax authorities were granted time to verify claims on merits after providing reasonable opportunity to taxpayers.
  • Approved transitional credit was to be reflected in the Electronic Credit Ledger.
  • The GST Council could issue further guidelines for verification of transitional credit claims.

Section Involved

  • Section 140 of the Central Goods and Services Tax Act, 2017
  • Rule 117 of the Central Goods and Services Tax Rules, 2017
  • Transitional Input Tax Credit (TRAN-1 & TRAN-2)

Link to Download the Order

https://www.mytaxexpert.co.in/uploads/1785303914_2160compressed.pdf

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